Which Types of Insurance Should You Prioritize?

There are many types of insurance that we can use in order to protect us from loss. When something is insured, you don’t have to worry as much about losing or damaging it, as the insurer will pay out its value so that you can replace or repair it.

Insurance has been described as a little bit like a life jacket – whilst it can be a nuisance if you don’t need it at the time, you’ll be grateful for it when you do. But with so many different insurance types of there for various different things, which ones should you make sure that you have – even if you don’t get the others?

#1. Auto Insurance:

If you have a car, then auto insurance is an absolute must. Never drive around uninsured – it’s not only against the law but you’re also putting yourself and others at massive risk. If you’re not insured and you end up in a road accident, you’ll face prosecution and you’ll also be personally liable for paying for any damage to your own vehicle and those of others.

If somebody has been injured as a result of the collision, you may even end up finding yourself covering their medical bills. It’s just not worth it!

#2. Home Insurance:

Whether you own your home or are renting, getting some type of cover to protect the property that you live in is essential. If you own your home, make sure that it is insured against anything that could go wrong, from burst pipes and smashed windows to appliances breaking down.

It’s worth checking what your policy includes – you might have to take out separate cover to protect your home from flooding, for example. If you rent, then your landlord may already have cover for the property itself but it’s worth getting insured for the belongings that you have there, from appliances and furniture to your valuables.

#3. Health Insurance:

Medical debt contributes to almost half of all bankruptcies in America, so if you’re uninsured when it comes to your health, you’re putting yourself in a very vulnerable financial position.

Even if you are generally healthy, it’s worth getting health insurance because if you do ever need it you will be extremely thankful that you did. One unexpected medical emergency could leave you thousands of dollars in debt – don’t take that risk.

#4. Life Insurance:

If you have a family and want to make sure that they are financially protected in the event of your death, then getting a life insurance policy is essential. You don’t have to be a parent to get life insurance; perhaps you want to make sure that your spouse or partner can continue paying the mortgage if you were to die or maybe you’re a carer for a parent who relies on you financially.

Business owners can also benefit from getting life insurance; this is especially true if you have a business partner, who can be the beneficiary and the money can be used to help them continue running the company. You should consider getting life insurance no matter your profession – even stay at home parents can benefit.

#5. Identity Theft Protection:

Finally, what would you do if somebody stole your identity? It’s one of those things that people tend to think won’t happen to them, but the truth is that it can happen to just about anybody – including you.

And, you’re at a higher risk than you think; one misplaced passport or driver’s license could land you in a world of trouble. Getting yourself covered with identity theft protection can help you live your life with additional peace of mind.

Which of these insurance types have you already got, and which will you be getting?